This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Don't Count Fed Chicks Before Hatching

Stocks in this article: TWTR NFLX

NEW YORK (TheStreet) -- Don't count your chickens before they hatch, or so the market lesson could have read on Wednesday. Shares were higher all day in anticipation of a better economic report card from the Fed, and popped immediately after their release. But markets quickly retreated to previous levels -- seeming to have read the fine print more carefully.

Yes, the central bank is still betting on stronger second-half growth. But there were plenty of caveats in there. For instance, "Participants remarked it was too early to confirm the bounceback in economic activity would put the economy on a path of sustained above-trend economic growth". There were also references to slowing Chinese growth, Ukraine's crisis and plenty of talk around a faltering housing market. Bottom line: we're not out of the woods.

Amid general optimism, financials outperformed, showing leadership that's been MIA so far this rally. Greywolf Execution's Mark Newton advocates buying dips in the group, suggesting the sector is on the verge of turning higher.

Tech stocks were clear illustration of what's become a stockpickers markets -- Twitter (TWTR) was shedding more than a percent while Netflix (NFLX) was more than 3% higher after reports it will launch in six more European countries this year. Small caps gained, but with a lack of conviction.

Standing back, the minutes don't change anything. We all knew they would be broadly positive after last month's cut to bond purchases, but we've still got a vacuum of decent catalysts to push strongly higher. In fact all of the so-called Fragile Five emerging market economies with current account deficits -- India, Indonesia, Turkey, Brazil and South Africa -- have outperformed the S&P in terms of equity returns this year. Still, so long as the fundamentals are decent (and those EMs still look risky) there are few reasons for a savage sell-off. 

-- By Jane Searle in New York

>>Read More:

Don't Even Think About Selling Facebook 

Sticking With Value Stocks 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs